But Puerto Rico Doesn’t Want Reform. The governor refuses to implement furloughs and pension cuts mandated by the Promesa (Puerto Rico Oversight Management and Economic Stability Act) board while asking for $94 billion in aid from Washington for reconstruction costs.

Rather than settle with bondholders and pay (some) of the debt earlier this year,

More unthinkable was ruining the “flat broke” image the commonwealth has been cultivating so it can write down debt and skip the matching requirements necessary to receive Federal Emergency Management Agency funds. It’s also more convenient to tap taxpayers than to borrow money from private entities asking for accountability. This is particularly true for a state-owned monopoly like Prepa, which is as much a political instrument as it is an electricity company.

When critics complained last year that Promesa would alleviate the pressure on island politicians to reform the welfare state, their concerns were pooh-poohed. Congress said Promesa’s “financial management and oversight board” would impose the discipline necessary for reform. Negotiated settlements with bondholders were to be given priority and existing restructuring agreements—like the one between Prepa and its creditors—were to be preserved.